Mathematical interactions: Financial mathematics

Abstract

Calculators are too often regarded as devices to produce answers to numerical questions. However, a graphics calculator like the Casio CFX-9850GB PLUS is much more than a tool for producing answers. It is a tool for exploring mathematical ideas, and we have written this book to offer some suggestions of how to make good use of it when learning about and using the basic mathematical concepts that underpin finance.

We assume that you will read this book with the calculator by your side, and use it as you read. Unlike some mathematics books, in which there are many exercises of various kinds to compete, this one contains only a few 'interactions' and even fewer 'investigations'. The learning journey that we have in mind for this book assumes that you will complete all interactions, rather than only some. The investigations will give you a chance to do some exploring of your own.

We also assume that you will work through this book with a companion: someone to compare your observations and thoughts with; someone to help you if you get stuck; someone to talk to about your mathematical journey. Learning mathematics is not meant to be a lonely affair; we expect you to interact with mathematics, your calculator and other people on your journey.

Throughout the book, there are some calculator instructions, written in a different font (like this). These will help you get started, but we do not regard them as a complete manual, and expect that you will already be a little familiar with the calculator and will also use our Getting Started book, the User's Guide and other sources to develop your calculator skills.

Financial mathematics is one of the topics in General mathematics, mainly because it is an important application of mathematics to the real world and fundamental to all of our lives. Much of our life is centered around controlling, or attempting to control, our own and sometimes others finances. You will learn how to write and use programs as a ready reckoner for every day situations and build on your knowledge of patterning to reinforce your understanding of interest structures.